Author: evergreen

These covenants are implemented by subdivision developers so consistency is maintained among all the properties in the neighbourhood, and the value of all the land stays consistent.

Restrictive covenants function to control what homeowners can or can’t do with the use and appearance of their property. These covenants are implemented by subdivision developers so consistency is maintained among all the properties in the neighbourhood, and the value of all the land stays consistent.

What is restricted in a covenant?

Restrictions can vary. Here are some examples:

• colours you can paint a garage door
• materials that can be used for fencing
• if multi-unit dwellings are permitted
• types of trees that can be planted
• additions to a house
• if a backyard pool is permitted
• storage of any boats or trucks in the driveway
• installing satellite dishes or clothes lines

Do restrictive covenants apply to resale homes?

That depends. Under the law, restrictive covenants “run with the land,” which means they apply to any future buyer of the property. However, the restrictive covenant for a resale home may have expired or might not be enforceable because the development of the subdivision is finished.

Some restrictive covenants are not legally binding, especially if they are thought to be arbitrary or not in the public’s best interest. Legally, under the Ontario Land Titles Act, restrictive covenants automatically expire after 40 years. However, the covenant may be set up with a different end date.

When you are in the process of buying a house, the standard Agreement of Purchase and Sale will include a clause that says the title will be free from all registered restrictions and encumbrances, but not any registered covenants that run with the land. Review the purchase agreement in detail with a real estate lawyer to find out exactly which easements or restrictive covenants affect the property you wish to purchase. 

Are you thinking about buying a condominium? It’s important to know exactly what is included when you are considering purchasing a particular condo. 

What do I own when I buy a condo?

When you buy a condominium, you own a private unit registered in your name. In freehold condominiums, you also own the land, the exterior walls, and the roof. You might also be permitted sole use of balconies, parking spaces, storage lockers, driveways, and private lawns. 

Besides the unit itself, you also share ownership of some common elements in the larger building like lobbies and hallways, elevators, recreational facilities, walkways and gardens, and other amenities. Shared elements could also include structural elements and mechanical or electrical services.

What are condo fees?

Owning a condo comes with monthly fees that all unit owners pay. These fees cover the upkeep and replacement of shared property and may also cover the condo corporation’s insurance policies, utilities and services (snow removal, lawn mowing).

A portion of monthly fees may be put into a reserve fund to cover future maintenance and repairs. In some provinces and territories, a reserve fund study is required by law to tell condo owners how much money should be paid into the reserve fund. An engineer or other professional conducts a detailed examination of all building components and reports when repairs and replacements are expected, with a cost estimate.

Condominium fees may be adjusted from time to time to reflect the changing costs of goods and services and the health of the building’s reserve fund. 

“Title” is a legal term that means you legally own a property. You obtain title when the owner signs the deed (which is a transfer document) over to you. It is then registered in the government’s land registration system.

What is residential title insurance?

Residential title insurance is an insurance policy designed to protect both you as a residential property owner and your lender against financial losses related to the property’s title or ownership.

Do I need title insurance?

In Ontario, you are not required to purchase title insurance. Discuss it with your

lawyer, title insurance company, or insurance agent/broker to understand the types of protection title insurance and if other options exist. 

What does residential title insurance cover?

A title insurance policy may provide protection from the following losses:

■ Unknown title defects that prevent clear ownership of the property

■ Existing liens against the property’s title 

■ Encroachment issues (e.g. a structure actually on your neighbour’s property)

■ Title fraud

■ Errors in surveys and public records

■ Gap coverage between the time your property purchase is finalized and when your title is registered in Ontario’s land registration system

■ Survey coverage may eliminate the need for a new up-to-­date survey of your property and is acceptable to most lenders as an alternative to a new survey or a Real Property Report (RPR)

What types of properties can be insured?

■ houses

■ condominiums

■ cottages

■ rental units

■ vacant land

■ cooperatives

■ leased properties

■ rural properties

How much does it cost?

It varies based on the value of your home and the insurance company you choose. You will also need to pay a one-­time fee called a premium.

How long does the coverage last?

As long as you own the property. Most policies extend coverage to your heirs through a will or to a spouse in the event of a divorce.

Where can it be purchased?

Your lawyer or title insurance company can help you purchase title insurance, or you can contact an insurance agent/broker. To see a list of licensed title insurance companies in Ontario, visit the Financial Services Commission of Ontario’s (FSCO) website at www.fsco.gov.on.ca, click on Licensing & Registration, and select Licensed Insurance Companies in Ontario.

Title insurance purchasing tips

When you buy residential title insurance, make sure the following factors are met:

■ Your property is insured for its full value

■ Your policy’s effective date is the same as the property’s closing date

■ Any other title­-related issues that could affect selling, mortgaging, or leasing your property in the future

When your offer to purchase a house is accepted, you will give the seller a deposit toward the purchase price. Why is this required? 

What is the purpose of a deposit?

• It provides security to the seller. A deposit gives the seller assurance the buyer is serious about the purchase, has a stake in the agreement, and intends to complete the deal.
• It pre-estimates possible damages. If a buyer breaches a contract, the deposit gives a court a number to work with to calculate damages.

How much is the deposit?

Deposits for re-sale properties can be any amount, but 2% to 10% of the purchase price is typical. A higher deposit may be more attractive to a seller than a smaller one.

In Ontario, the deposit is usually paid by certified cheque or money order.

What is the difference between a deposit and a down payment?

The term “deposit” is not the same as “down payment.”  A down payment includes the deposit and is the total amount paid by the buyer, up to the value of the mortgage. The down payment and the mortgage amount together will add up to the purchase price. 

The deposit is usually paid when the offer is made. The rest of the down payment and mortgage are paid to the seller at closing.

Are you wondering if home staging is really worth it? There are many reasons why it can make all the difference when you are trying to sell your house. Whether it is the factor that helps it sell faster, at a higher price, or simply allows it to sell after sitting on the market for a long period, home staging has many benefits. Here are some of the best reasons to stage your home.

Staging creates an emotional connection

Most real estate professionals believe that staging is the best way to evoke an emotional connection in a potential buyer. Purchasing a home is as much an emotional decision as a practical and financial one. When buyers are looking at homes, their personal preferences play a huge role in their decision-making. Home staging can help buyers imagine how they would feel living in the home and what their lives would be like.

Staging makes your home more attractive

Staging your home is an easy way to make your home more appealing to the eye. When people first enter your home, they will see the aesthetics and form an immediate impression. Home staging is a way to make sure they get a good first impression. 

Staging can be like giving your home a complete makeover. Your lived-in furniture may be replaced with new items, walls can be re-painted in neutral colours, and aesthetic pieces can be placed around the home in strategic areas.

Staging also allows potential buyers to imagine what their own furniture could look like in the home. When you can create a vision in a buyer’s mind, it makes it far easier to sell the home. This is especially true when it comes to luxury homes and higher-priced houses.

Staging makes your home more spacious

Staging is a great way to show buyers the space that’s available in the home without clutter and unwanted furniture in the way. A key goal for home staging is to create the perception of a bigger home with lots of space. Why? Homes that feel cramped are more difficult to sell.

Staging can raise the asking price

Though it’s not an exact science, it’s estimated that home staging could raise the asking price by 6% to 15%. That’s a big boost for the sale price by doing something as simple as home staging.

Staging can help a house sell faster

Because home staging helps establish an emotional connection for the buyer and makes your home look attractive and more spacious, your house can sell quicker.

Staging can help sell a house lingering on the market

For houses that are sitting on the market for too long, home staging could be all it takes to sell them. Maybe the house isn’t selling because it isn’t creating the emotional connection, it doesn’t look attractive, or it feels cramped. Home staging can solve all these problems!